Control Towers Market: Overview
The market size for control towers was USD 6.1 billion in 2021, and it is projected to grow at a CAGR of 20.1 percent during the forecast period. The necessity for retailers, contract manufacturers, and logistics service providers to digitalize their supply chain processes is what is causing the expansion. This is so that firms may have better visibility and make better decisions thanks to supply chain control tower software. In the transportation and supply chain ecosystems, control towers are becoming increasingly prevalent as they make it simpler for companies to track deliveries in real-time and increase delivery efficiency.
Because control towers are being used and adopted more frequently all over the world, the market for them is expanding. The integration of control towers with enterprise resource planning (ERP), transportation management systems (TMS), and warehouse management systems (WMS), which give firms operational control over their whole supply chain network, can be credited for the rising popularity. Control towers also help organizations by enabling staff to better assess and optimize decisions, spot process flaws, and manage orders based on cycle times. Over the course of the projected period, control towers' additional advantages are anticipated to fuel market expansion. Supply chains are getting harder for firms to manage as a result of technological improvements and the quick globalization of business. As a result, businesses are searching for ways to manage supply chain complexity while avoiding risks and uncertainties. The control towers may be the ideal answer to all of these issues because they improve visibility amongst trading partners, including companies, nations, and modes of transportation. These solutions also assist businesses and organizations in locating potential areas for revenue development and expense reduction. Additionally, businesses all around the world are adopting control towers to build a multi-enterprise supply chain that can provide in-app control for quick delivery procedures.
Despite the fact that control towers provide several advantages for the company, poor visibility caused by data quality problems may limit the market's expansion. Data security is yet another significant issue that businesses using the control tower must deal with. Companies and their partners operating at various levels must exchange sensitive information and data in order to operate a control tower. Since such a data transmission puts the company's information at risk of leak, it is necessary to secure data security and shield critical data from intruders. Furthermore, one of the reasons impeding the expansion of the control tower sector is the lack of qualified individuals that can produce reliable insights.
Control Towers Market: COVID-19 Impact
Businesses have suffered as a result of the COVID-19 epidemic, which has stifled innovation, dried up cash flows and financial reserves, and suppressed profitability. The COVID-19 outbreak affects businesses equally, and the market will probably be affected eventually. Better distribution and production networks were created as a result of the COVID-19 pandemic to better meet worldwide demand. Companies are concentrating on the adoption of these solutions to better anticipate, respond to, and even forecast supply chain difficulties in order to bring about these improvements. According to study conducted by Blue Yonder in February 2022, 83% of the surveyed firms increased their supply chain investments over the previous 12 months, and 1 in 10 organisations (11%) invested more than USD 25 million.
Control Towers Market: Drivers
Increasing Adoption of Real-Time Analytics, Big Data Analysis, and Cognitive Technologies to Drive Market Growth
With the globalisation of the whole economy, the need for improved logistics and supply chain management practises has become inevitable. The ability to gather, arrange, and evaluate data is a crucial aspect of any supply management program's effectiveness. Business demand for control tower solutions from a wide range of industry sectors is growing quickly. These technologies have many benefits, including accurate forecasting and Business Intelligence (BI), which support supply chain efficiency, cut waste, and increase corporate revenue. Businesses use automated processes to transmit information, evaluate and filter out customer input, and operate in these areas in an effort to run more effectively and efficiently across a variety of industries while partnering with a variety of partners. To manage these brand-new, potentially priceless data sets, predictive analytics software and new big data science approaches have been developed. Big data may be used in a variety of ways to improve procurement strategy in logistics and supply chains conceptually. Big data enhances the accuracy, transparency, and perspective of supplier networks, enabling supply chains to share more complicated information. These elements are predicted to accelerate the market growth for control towers during the anticipated time frame. Information is communicated, consumer feedback is analysed and filtered, and these activities are performed.
Control Towers Market: Restraints
Data Security Concerns to Hamper Market Growth
Data security is the key concern that can prevent the company from employing the control tower. Inadequate or non-existent security measures dramatically increase the risk of a cyberattack happening. A supply chain assault involves penetration or attack via a third-party source and targets a company. If one of these firms has inadequate Cyber Security threat protection, it can end up acting as the point of entry for the entire supply chain. Due to the large spectrum of risks, a corporation's risk surface may be very complicated. Cyberattacks and data breaches can cause a lot of damage to a company, including loss of revenue, brand damage, and other things. The ability of various cloud-based platforms to guarantee data security and bar unauthorized access to vital information may or may not be possible. This information might be sought after by online burglars, unauthorized users, and hackers, which could be detrimental to the company.
Control Towers Market: Segment Overview
Operational Segment to Dominate Market due to its High Usage
In 2021, the operational segment's proportion of sales was greater than 83.0%. Operational control towers are employed for both implementation and analysis. As soon as a problem arises, they send out notifications, enabling the authorized operators to address it immediately. Through the control tower system, operational control towers also provide full visibility and control over the supply chain. An operational control tower can also assist businesses in making better operational decisions by transparently controlling corporate operations through the use of predictive, analytical, and real-time applications. Over the forecast period, the analytical category is expected to have the quickest CAGR. One of the main factors influencing the segment's growth is the analytical control tower's capacity to provide real-time analytics information. To optimise the overall network, it can help organise and track choices and implementation across functions and businesses. Large volumes of data are gathered, examined, and automated decision-making is done in analytical control towers using predictive analytics.
With Effective Application of Control Towers in Supply Chain, Supply Chain Category Dominated Market
With a revenue share of more than 61.0% in 2021, the supply chain prevailed. In order to plan out disturbances in the inventory flow and give their online customers what they want when they want it, many businesses are focusing on deploying control towers to have great control over their supply chain. In addition, control towers in the supply chain have many advantages, including effective warehouse management, real-time monitoring, and shipment deliveries. Such elements are encouraging for segment expansion. Moreover, the transportation segment is expected to experience a considerable CAGR. In addition to providing visibility into deliveries, ASN, on-time delivery, track and trace, freight spend, and other comparable information, control towers also offer insight into incoming and outgoing shipments. To effectively execute supply chain operations and provide accurate information to their suppliers, automotive businesses are implementing cloud-based control tower solutions.
Control Towers Market: Regional Landscape
North America to Dominate Market due to Growing Use of Transportation Management Systems
It is anticipated that North America will lead the market and have the quickest CAGR growth. Due to an increase in the use of transportation management systems and third-party logistics service providers to manage certain portions of a company's transportation and logistics network, the necessity for control towers has grown in North America. Businesses in North America are progressively implementing techniques to control the massive amounts of knowledge produced by value chains and use the data to produce business insights. Intense competition and rising operational costs are also encouraging the use of control towers in the region's organized retail sector as businesses search for ways to cut costs and increase profitability. Organizations in the area are steadily adopting digitization and other cutting-edge technologies. North America is relying more and more on its supply chains to build more customer-centric growth engines while being strong and responsible. The creation of new disruptive technologies and new business models has opened significant opportunities for the control tower in the supply chain.
Over the forecast period, Asia Pacific is expected to become the region with the quickest growth. Businesses in the area are gradually embracing sophisticated technology and digitization, which is opening up new prospects for market growth. The retail and e-commerce sectors, which are among the biggest contributors to the supply chain industry, are also flourishing in the area. Control towers are necessary for the Asia Pacific retail sector's supply chain management.
Global Control Towers Market: Competitive Landscape
Blue Yonder Group, Inc. announced its collaboration with data cloud firm Snowflake in March 2022. The alliance aims to transform supply chain management's access to fragmented data. Manufacturers, retailers, and third-party logistics providers may foresee and address business disruptions with Blue Yonder's Snowflake-powered Luminate Platform, which lowers risk and addresses supply chain issues. Moreover, SAP SE introduced the SAP Sustainability Control Tower solution in December 2021. to help businesses analyze operational performance and create their strategy using a mix of standard and sustainability-related performance measures.
Few of the players in the Control Towers Market include Blue Yonder Group, Inc.; E2open, LLC.; Elementum; Infor; Kinaxis; Coupa Software Inc.; One Network Enterprises; PearlChain; SAP; Viewlocity Technologies Pty Ltd.
Regional Classification of the Global Control Towers Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Control Towers Market
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